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Recruiting is a complex process and can easily go wrong. Consider the fact that hiring the wrong employee could mean wasting your budget on job advertising, recruiting systems, and relocation and training. Then add to this, the bad hire’s negative influence on your team’s performance. And you’ll understand why having an efficient recruitment strategy is important.
This is where a recruitment funnel comes into play. To avoid mis-hires and increase the speed and efficiency of your recruiting, it’s important to have a system that facilitates every step of your recruiting process. A recruitment funnel is a structured process for managing every step of recruiting from identifying candidates to onboarding the selected candidate. It eliminates the extra costs, speeds up your recruiting process, and decreases chances of mis-hires.
What is a recruitment or hiring funnel?
A recruitment or hiring funnel is a step-by-step process companies use to find and hire the best candidates. It involves multiple stages, from sourcing and attracting candidates to making job offers and onboarding the selected hires.
The process begins by advertising job openings and drawing in many potential applicants. This creates a large pool of candidates at the top of the funnel.
As it moves forward, the number of candidates reduces through various screening and evaluation activities, such as resume reviews, skills assessments, and interviews. Each stage filters out candidates who do not meet the required qualifications or fit.
The process ends when the organization is left with the best-fit candidates to extend job offers.
Benefits of a recruitment funnel
Here are some key benefits of implementing a recruitment funnel in your hiring strategy.
1. Faster time-to-hire
Having a fast time-to-hire is a big plus because it helps companies snag the best talent before others do.
Imagine a company needs a new content marketer. With a recruitment funnel, they can quickly find, interview, and hire the right person. This means they won’t lose out on great candidates who might go to another company if the hiring process takes too long.
A recruitment funnel streamlines the hiring process by breaking it down into structured stages. This helps companies move candidates through each stage without any unnecessary delays. For example, the funnel might include sourcing candidates, initial screening, skills assessment, interviews, and final selection.
Companies can reduce the overall time-to-hire by automating and optimizing tasks within each stage. A recruitment funnel does this through automated skills testing, like the features offered by Testlify. These tools can quickly assess candidates’ abilities early on and save time in the screening stages by identifying the most qualified applicants faster.
2. Better candidate experience
Consistency in hiring means that every candidate undergoes the same steps and evaluation process. Everyone has an equal chance to impress the reviewer with their skills and experience, stopping any unfairness from creeping in.
For instance, imagine you’re hiring for a sales role. If you ask all candidates the same set of interview questions and judge them using the same standards, it’s fairer for everyone. Nobody gets special treatment just because they were interviewed at a different time or with a different interviewer.
3. Data-driven decision making
When candidates know exactly what to expect at each stage, they feel more at ease and positively perceive your company.
For instance, if you outline the steps as 1) Apply online, 2) Skills test, 3) Phone interview, and 4) In-person interviews, candidates won’t be left guessing.
And it’s not just about telling them what’s coming up. Sending updates after each stage keeps them in the loop. Nobody likes feeling ignored after applying for a job!
Little extras like offering interview tips or a glimpse into the job can also make candidates feel valued, even if they don’t get hired.
Why does this matter? Because happy candidates are more likely to talk positively about your company, whether they get the job or not. And that’s great for your reputation.
Chris Masanto, the CEO and co-founder of PetLab Co., says,
“We’ve found that a well-structured recruitment funnel is crucial for providing a better candidate experience. By clearly outlining each stage—from the initial application to skills tests and interviews—we reduce candidate anxiety and increase their confidence. Regular updates and clear communication ensure that candidates feel valued and informed throughout the process. This not only improves our acceptance rates but also enhances our employer brand. Happy candidates, even those who don’t get the job, often speak highly of us, helping us attract top talent and drive business growth.”
4. Data-driven decision making
With a recruitment funnel, you can analyze granular data on candidate drop-off rates between stages.
You can track where your highest-quality candidates come from – job boards, employee referrals, college recruiting events, etc. If you notice that referrals consistently yield better hires, you can double down on promoting your employee referral program.
The funnel data also shows you the impact of different assessment methods. You may find that candidates who pass your coding test are more likely to be high performers on the job. Or those who score well on a cultural-fit survey have higher retention rates. These insights help you prioritize the most predictive assessments.
What does a recruitment funnel look like (template)
A recruitment funnel visually represents a candidate’s various stages during the hiring process.
It helps recruiters and hiring managers track and monitor the flow of candidates from the initial sourcing stage to the final hiring decision.
By visualizing the funnel, companies can identify bottlenecks, optimize recruitment efforts, and improve hiring efficiency.
Here’s one template from Slidebeam that tracks candidates through the hiring process. It has numbers for each stage, so you can see how many people make it to the next step.
How to create an efficient recruitment funnel
Without a clear plan, the recruitment process can be time-consuming and expensive. An efficient recruitment funnel helps organize each step and makes finding and hiring the best candidates easier.
Here’s how to create a recruitment funnel that works well for your hiring needs.
1. Define your hiring needs and criteria
Clearly understand and outline what you are looking for in a candidate. Don’t rely on generic job descriptions—those lead to mis-hires. You need an intimate understanding of the work itself.
- Conduct a thorough job analysis
A job analysis goes beyond just listing duties and responsibilities. You want to deeply understand the knowledge, skills, and behaviors required for top performance.
For example, if hiring a sales role, study your top-performing reps. Observe them in action – how do they prospect? What sales techniques do they use to move deals forward? How do they leverage your CRM and tools? Note the specific competencies that differentiate them.
The more intricately you can map out the work’s true demands, the better you can evaluate candidates.
- Identify must-have skills and qualifications
Based on that thorough job analysis, you can pinpoint the technical skills, soft skills, credentials, and experience candidates must have to perform the role.
For example, your sales analysis may reveal key requirements like:
– Prospecting skills to build a pipeline
– Ability to run product demos and handle objections
– Salesforce CRM expertise
– Industry knowledge to speak the language of clients
– Negotiation and closing capabilities
So, get hyper-specific about the skills and qualifications. This will prevent hires who look good on paper but can’t translate their experience to excel in your work environment.
2. Build a strong employer brand
86% of applicants are likely to research company reviews and ratings when deciding where to apply for a job. With so many candidates carefully vetting potential employers, building a strong employer brand is a no-brainer option.
- Develop an employer value proposition
Your employer value proposition (EVP) is the unique set of benefits and rewards employees receive in exchange for their skills, capabilities, and experience. It answers the question, “Why would a talented person want to work here over other opportunities?”
Here’s how to create one:
Understand what employees value: Talk to your current employees to find out what they like most about working at your company. It could be the work culture, benefits, career growth opportunities, or the impact of their work.
Highlight unique benefits: Identify what sets your company apart from others. For example, if your company offers flexible working hours, remote work options, or unique professional development programs, ensure these are highlighted in your EVP.
Create a clear and honest statement: Combine these insights into a simple and honest statement. For example, your EVP could be: “At XYZ Corp, we offer a collaborative work environment with flexible hours and opportunities for professional growth.” The goal is to paint a vivid picture of the tangible and intangible rewards that set your workplace apart.
Related read: The Ultimate Guide to Employer Branding
Example: Salesforce is known for its strong EVP, which emphasizes a culture of innovation, inclusion, and community service. The company highlights its commitment to employee development and volunteer programs, making what new hires can expect clear.
- Showcase your company culture through social media
Once you’ve defined your EVP, showcase it on social media platforms like LinkedIn, Instagram, and Twitter. Share employee testimonials, day-in-the-life videos, highlight achievements and milestones and behind-the-scenes office culture snapshots.
Example: Zappos, the online shoe retailer, uses social media to showcase its fun and quirky company culture. They regularly post pictures and videos of office events, employee spotlights, and community involvement activities. It gives potential hires a glimpse into what working there is like.
2. Attract top talent
Attracting top talent is about promoting your open roles and company in a way that resonates with the candidates you want to reach.
Here are some key strategies:
- Optimize job postings and descriptions
Your job postings are often the first interaction candidates have with your company, so make them count. Instead of dry, bullet-pointed lists of requirements, craft compelling stories that sell the role’s impact and your company’s mission.
Testlify offers 500+ job description templates that provide a strong foundation. You can customize them to spotlight the meaningful work, growth opportunities, and culture fit someone would experience in this position.
To make your listing more interesting, you can use a structured flipbook and thoroughly explain your company values, your expectations from the role you’re looking for, or any other explanation you consider necessary. Flipbooks typically provide some useful analytics such as views, clicks, reading time, etc. so you’ll know how your document is performing.
- Leverage employee referrals
One of the most powerful sourcing channels is your employees. After all, people tend to introduce others with similar skills and values. Encourage and incentivize your team to tap into their networks and spread the word about open roles.
Consider featuring current employees discussing why they love working for your company. Those authentic voices resonate more than corporate messaging.
- Use job boards and recruitment marketing
While you want candidates to find you organically, don’t neglect active promotion on job boards and social media. These channels allow you to target the specific types of candidates you’re trying to attract.
For example, if you’re hiring for marketing or freelance positions, use specialized job boards like Superpath Job Board for content marketing roles and Peak Freelance Job Board for freelance writing opportunities. Some of these job boards have a rather large membership database and can amplify your job ad effectively.
If you know someone who has a lot of influence in your niche (influencers, thought-leaders or any respected personalities) try to get them to promote your job listing. A simple social media post mentioning that your company is looking for a role can bring in a lot of good candidates in your recruitment funnel.
You can also use Testlify’s integrations to manage postings across multiple platforms, saving time and effort. Their platform is designed with integration in mind and can be seamlessly connected to various third-party tools, including application tracking, communications, email, etc.
4. Simplify the application process
Remove the unnecessary friction so candidates can easily apply while you screen for initial qualifications. Here’s how:
- Create an easy-to-use online application
Long, clunky application forms frustrate candidates and lead to drop-offs. Keep it simple by allowing them to apply with just a few clicks or uploading their resume.
Testlify’s application assessment platform makes this easy. Candidates can quickly apply using their LinkedIn profile or uploading common file formats. No more digging through databases or parsing PDF attachments on your end.
- Implement pre-screening questions or assessments
Instead of waiting until later stages, you should use the application process to quickly screen candidates on must-have skills or qualifications you identified earlier.
For example, if you’re hiring customer service reps, include a scenario-based question where they must resolve a sample complaint. Their response allows you to gauge skills like communication, empathy and problem-solving upfront.
With Testlify, these assessments can be customized and automatically scored, eliminating manual review time. Only candidates meeting your pre-defined scoring threshold would progress.
5. Conduct candidate screening
After the initial application screening, the next stage is to evaluate the remaining candidates’ skills and qualifications thoroughly. This multi-step process lets you assess fit before investing time in final interviews.
- Resume screening and initial phone interviews
While resumes provide an overview, they often exaggerate or overlook key details. A brief phone screen can quickly verify the basics—job history, responsibilities, and required skills.
You can also use this call to gauge communication abilities and interest levels. Listen for red flags, such as an inability to articulate their experience clearly.
- Skills assessments and coding challenges
The best way to evaluate technical competencies is through real-world skills tests. Testlify offers a library of custom assessments spanning technical, analytical, and job-specific abilities.
Testlify’s AI-powered auto-scoring system evaluates submissions against your rubric, while anti-cheating features maintain integrity.
- Structured interviews
You’ll want more in-depth evaluations through structured interviews with key stakeholders at this stage. Consistency is key, so Testlify provides shared interview scorecards to rate candidates across your criteria.
Beyond just experiences, you can include case studies, job-specific scenarios, and even virtual job auditions through Testlify. This reveals how candidates would perform the work.
For example, a customer service candidate could role-play handling an irate customer, or a data analyst could interpret visualizations and present their findings.
Testlify also enables video interviews that provide unconscious bias training to ensure objective evaluations.
6. Select top candidates
You’ve thoroughly vetted and evaluated the remaining candidates through skills assessments, interviews, and job auditions. Now, it’s time to make final hiring decisions backed by data.
Use Testlify’s reporting to review each candidate’s cumulative scores across all evaluations. You can easily compare them side-by-side on key competencies. Don’t just rely on gut feel – let the objective data guide your decisions.
You can also look at candidates’ performance data from work samples or virtual job auditions to see how they operate in real scenarios.
The goal is to select the candidate(s) with the strongest proficiency across your pre-determined qualifications.
7. Make the job offer and new hire experience better
Once you’ve identified your top candidate(s), you’ll want to extend competitive job offers quickly before they accept another opportunity.
Create the offer letter and send it to the candidate(s) through secure online portals. Once they approve and sign, onboard them.
8. Continuous improvement and optimization
The hiring process doesn’t stop at making an offer, though. You need to improve your recruitment strategies consistently.
Monitor funnel metrics like source and quality of hire, time-to-hire, offer acceptance rates, and new hire performance data. Testlify compiles these analytics to identify bottlenecks.
Use all this data to optimize and refine your sourcing strategies, assessments, and interviews.
Conclusion
A recruitment or hiring funnel can make your complicated recruiting process straightforward and effective. It could have different stages but typically starts with identifying company needs and creating job ads according to them. It then covers different stages of attracting talent and choosing the right one.
An efficient recruitment funnel includes top strategies and tools for each step of the recruiting process. In this article, we provided a detailed guide on how to create an efficient recruitment funnel. Make sure to check them out.
